Colorado has been awarded its second disbursement of U.S. Treasury funds equalling $5.7 million in credit for small business loans.
The Denver Business Journal has reported a joint announcement by the Colorado Housing and Finance Authority (CHFA) and the Colorado Office of Economic Development and International Trade (OEDIT) declaring the state’s receipt of $5.7 million in U.S. Treasury funds earmarked for small business loans. The money is the second installment of a total $17.2 million assigned to Colorado by the Treasury Department’s State Small Business Credit Initiative. The federal program was signed into law three years ago as the Small Business Jobs Act of 2010, a financial incentive program designed to aid firms with 750 or fewer employees by offering them affordable credit. The program accounts for $1.5 billion in U.S. Treasury funds made available to business, and is expected to spawn a tenfold increase of $15 billion in leveraged private capital for small companies nationwide.
According to the DBJ article, Colorado has already successful lent $3.2 million, or about 80 percent of its initial disbursement of funds to local businesses, generating $28.8 million worth of private-sector financing for small and moderately-sized Colorado firms in the process. Cris White, CHFA chief executive and CEO, responded enthusiastically to the news.
We’re pleased that our success is being rewarded with an additional $5.7 million to fund the growth of Colorado’s small business community. By working with Colorado’s banks and community development financial institutions, we hope to leverage these funds with private capital to help businesses raise up to $50 million in new money for our state’s economy. –“Colorado Gets $5.7 Million from Federal Small Business Credit initiative.”
White also cited the Colorado Cash Collateral Support Program (CCS) for having provided 40 new loans sustained by these federal disbursements, which have resulted in the creation or preservation of 334 jobs in the state so far. Cash Collateral Support is designed to offer credit to companies that have experienced collateral cashflow shortfalls by making available between $1.25 million and $5 million in loans. More information on CCS is available here.
A sister initiative, the Colorado Capital Access Program (CCA), also run by the CHFA, seeks to assist participating lenders by matching their contributions, dollar for dollar, in a loan loss reserve fund that can reach up to 7% of the loan amount. (Loan maximums are $750,000.) According to the CHFA website, the CCA program will allow banks to increase their loan options to Colorado small businesses without increasing their risks. Both for-profit and nonprofit businesses are eligible, with special incentives available to small firms run by women and/or minorities, and to businesses located in certain ‘enterprise zones’ located throughout the state. More information on CCA is available here.
The addition of $5.7 million in credit for small business looks to be a boon to Colorado’s growing private sector. Small business owners who want to learn more about securing loans are encouraged to visit the CHFA links above. A list of all participating Colorado Capital Access lenders is also available at chfainfo.com/getthedealdone, or by calling CHFA at 1.800.877.2432.